DCTS reduces duty rates on wood products from Indonesia and Vietnam

supply chain risks

The government has introduced the Developing Countries Trading Scheme (DCTS) to improve access to the UK market for developing countries. The DCTS replaces the UK’s Generalised Scheme of Preferences (GSP).

This new DCTS is split into three frameworks.
  • Least Developed Countries (LDCs) will receive duty-free, quota-free trade on everything but arms. Currently, 47 countries are on this list.
  • General Framework provides reduced duty on eligible goods for a wider group of developing countries classified by the World Bank as low income (LIC) and lower middle-income (LMIC). Currently, there are 10 countries on this list including Indonesia, India and Vietnam.
  • Enhanced Framework provides the additional benefit of duty-free, quota-free trade on 85% of eligible goods to LIC and LMIC countries who have also ratified and are effectively implementing 27 international conventions.

It is claimed the new scheme will cut administrative costs for businesses by reducing tariffs and bringing more countries in scope of the most generous tariff reductions. It also cuts red tape for developing countries, for example by simplifying rules of origin requirements for the least developed nations.

For wood products, there are three types of proof of origin, including:

  • An origin declaration (from exporter)
  • Importers knowledge
  • Form A: this can be a template instead of an invoice or commercial document. The UK does not require it to be stamped by the exporting customs authority.

You can read more about the DCTS scheme on our latest Trade Note, which can be viewed online or downloaded here.